Micron Technology (MU) Competitors

Applied Materials (NASDAQ:AMAT) and Micron Technology (NASDAQ:MU) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk, dividends and media sentiment.

Is AMAT or MU more profitable?

Applied Materials has a net margin of 24.06% compared to Micron Technology's net margin of 18.41%. Applied Materials' return on equity of 40.15% beat Micron Technology's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Applied Materials	24.06%	40.15%	22.42%
Micron Technology	18.41%	13.60%	8.90%

Do analysts prefer AMAT or MU?

Applied Materials presently has a consensus price target of $203.65, suggesting a potential upside of 2.89%. Micron Technology has a consensus price target of $146.44, suggesting a potential upside of 17.59%. Given Micron Technology's stronger consensus rating and higher probable upside, analysts clearly believe Micron Technology is more favorable than Applied Materials.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Materials	0 Sell rating(s)	8 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.68
Micron Technology	1 Sell rating(s)	4 Hold rating(s)	19 Buy rating(s)	1 Strong Buy rating(s)	2.80

Which has preferable valuation and earnings, AMAT or MU?

Applied Materials has higher revenue and earnings than Micron Technology. Micron Technology is trading at a lower price-to-earnings ratio than Applied Materials, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Materials	$27.18B	5.84	$7.18B	$8.22	24.08
Micron Technology	$25.11B	5.55	$778M	$5.55	22.44

Which has more risk & volatility, AMAT or MU?

Applied Materials has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Micron Technology has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Does the media favor AMAT or MU?

In the previous week, Applied Materials had 8 more articles in the media than Micron Technology. MarketBeat recorded 72 mentions for Applied Materials and 64 mentions for Micron Technology. Applied Materials' average media sentiment score of 1.12 beat Micron Technology's score of 1.07 indicating that Applied Materials is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Applied Materials	46 Very Positive mention(s)	6 Positive mention(s)	14 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Micron Technology	36 Very Positive mention(s)	4 Positive mention(s)	20 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is AMAT or MU a better dividend stock?

Applied Materials pays an annual dividend of $1.84 per share and has a dividend yield of 0.9%. Micron Technology pays an annual dividend of $0.46 per share and has a dividend yield of 0.4%. Applied Materials pays out 22.4% of its earnings in the form of a dividend. Micron Technology pays out 8.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Applied Materials has raised its dividend for 8 consecutive years. Applied Materials is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do insiders and institutionals hold more shares of AMAT or MU?

80.6% of Applied Materials shares are held by institutional investors. Comparatively, 80.8% of Micron Technology shares are held by institutional investors. 0.2% of Applied Materials shares are held by insiders. Comparatively, 0.3% of Micron Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Applied Materials beats Micron Technology on 13 of the 20 factors compared between the two stocks.